Table of Contents
When did the video game market crash?
1983
In 1983, the video game industry was hit with a recession that nearly spelled the end of video games for an entire generation. Critics were calling video gaming a fad, and many prominent companies went bankrupt or stopped making games entirely. This recession is known as the Great North American Video Game Crash.
What caused the video game crash of 1977?
Video game crash of 1977 In 1977, manufacturers of older, obsolete consoles and Pong clones sold their systems at a loss to clear stock, creating a glut in the market. The crash was largely caused by the significant number of Pong clones that flooded the market.
What was the catastrophic event in the games industry in 1983?
The video game crash of 1983, also known as Atari Shock in Japan, was an industry-wide recession. Revenues for video game makers dropped almost 97% in only two years. The crash almost destroyed the then-growing industry.
What was the first hit video game?
Pong was an immediate hit and it is considered the first commercially successful video game. Due to Pong’s success, several companies began producing games similar to Pong. Atari released numerous sequels to Pong and released a home version of the game during the 1975 Christmas season.
What caused the game crash of 1983?
The crash was attributed to several factors, including market saturation in the number of game consoles and available games, as well as waning interest in console games in favor of personal computers. Revenues peaked at around $3.2 billion in 1983, then fell to around $100 million by 1985 (a drop of almost 97 percent).
How much did Atari cost in 1983?
Atari 2600
| Four-switch VCS model (1980–1982) | |
|---|---|
| Generation | Second generation |
| Release date | NA: September 1977 EU: 1978 JP: October 1983 (Atari 2800) |
| Lifespan | 1977–1993 |
| Introductory price | US$189.95 (equivalent to $811.23 in 2020) |
When did Atari fail?
The beginning of the end started with the great flop of the 1983 model Atari 5200 t while the Atari 2600 held the console market captivated for years the release of the newer model failed to make the same impact and thus began the downfall of the gaming giant.
Why caused the video game crash of 1983?
Unsold Pac-Man, E.T. the Extra-Terrestrial, and other 1982 and 1983 games and consoles started to fill their warehouses. Lack of confidence in the video game sector caused many retailers to stop selling video game consoles or reduced their stock significantly, reserving floor or shelf space for other products.